In a surprising twist in the wine sector, the wines of the Autonomous Community of Castilla y León, with Denomination of Origin, have taken the lead in the national food and hospitality market, displacing the traditional leaders of the Autonomous Community of La Rioja . This progress is reflected in a market share in sales of 27.6% during the year 2022, according to a report prepared by NielsenIQ, a firm specializing in the analysis of market dynamics and consumer behavior.
The vice president of the Junta de Castilla y León, Juan García-Gallardo, presided over the presentation of the report, which took place at the Zamadueñas farm of the Agrarian Technological Institute of Castilla y León (Itacyl). The report reveals the “consolidation” of the market recovery, although at a “slower than expected” pace in the industry. However, within this context, the regional government highlighted that the wines of the Protected Designation of Origin and the Protected Geographical Indication of Castilla y León have shown a “better” behavior than all the quality wines of Spain and its main rivals.
The increase has been perceived mainly in the national sales of the Denominations of Origin of the region, which have experienced a growth in their market share of 1.3% compared to the previous year. This growth is largely attributed to the rebound in the hospitality sector, which is more relevant for wines from Castilla y León than for those of other origins, as well as a “very positive” behavior in the specialized channel.
In the traditional food and hospitality channels within the national market, Castilla y León has risen to the top position as market leader for the first time, with a market share in sales volume of 27.6%. Thus, it has managed to surpass La Rioja, which reaches 27.5%, Castilla-La Mancha with 13.1%, Catalonia with 7.2%, Galicia with 6.9%, Aragon with 5.2% and Navarra with 4.4%.
Already last year, Castilla y León demonstrated its potential by reaching the highest level of market share in its historical series, with 26.8%, only three tenths behind Rioja. This positive performance has also been maintained in the food channel, where the market share has gone from 23.4% to 23.8% in sales volume, and from 27.5% to 27.9% in value.
With regard to the hospitality sector, where Castilla y León concentrates its sales more than the national average, this upward trend has also been appreciated. It has experienced a growth of almost 19% in volume and 27.6% in value, maintaining the first position in market share, both in volume and value, compared to other communities, according to Ical.
During the presentation of the report, the vice president of the Board highlighted the regional government’s commitment to the wine sector as “generator of employment in rural areas.” García-Gallardo emphasized that the Government of Castilla y León has shown a “very special interest in the wine sector for all that it represents”. He acknowledged, however, that there is “room for improvement” that will be actively worked on. He praised “the highest quality” of the products from all the denominations of origin and all the quality figures, and highlighted “the ability of winemakers and all professionals in the wine sector” to create new products.
The wine industry is one of the “pillars of the economy” of Castilla y León, with a turnover that exceeds one billion euros, as highlighted by the regional government. It is estimated that the wine industry contributes 3.1% of the Gross Domestic Product (GDP) and helps maintain 3.8 percent of employment, between 18,000 and 19,000 people, around 13,000 wine growers and more than 750 wineries. Of the 82,000 hectares of vineyards, more than 90 percent are covered by quality figures and, of the wineries, almost 95 percent sell wines covered by some of the Protected Designations of Origin or the Community’s Protected Geographical Indication.
In 2022, the sale of Castilla y León wines was distributed 22% in the foreign market, 37% in the specialized channel and 42% in the general food and hospitality channel. The Board highlighted the “sustained” growth of exports, which have increased by 25% in volume and almost 22% in value, compared to last year.
By denominations of origin of Castilla y León, the positions are maintained for another year. Ribera del Duero and Rueda continue to occupy the second and third position in market share in the food and hospitality channels as a whole. Both lead the share growth of quality wines in the region. For their part, the rest of the denominations of the Community remain stable: León grows slightly, DO Toro and Cigales decrease and El Bierzo is maintained.